American Express reduced my credit line by 95%

[tfinch2]

AMEX raised my limit. You're doing it wrong.

 

[tfinch2]

Originally posted by: Gillbot

Originally posted by: alphatarget1

Originally posted by: Tooncesthedrivingcat
that's gonna hurt your score for a bit. And Amex has been doing this alot lately.

I don't need a loan anytime soon so that's good...

Citi took my interest rate from under 10% to over 22%. Needless to say, that one is now closed. I've had that account for nearly 15 years.

You know what you're interest rate is? 😕

 

[Bignate603]

Citi just knocked my interest rate from 13% to 20%. I called up my credit union and I'm switching to their Visa. 10% Rate isn't too shabby. They only gave me a $5k limit down from my $10k at Citi. I'll sit on it for a while and see about creeping my limit up over the next year or so.

 

[finite automaton]

Originally posted by: tfinch2

Originally posted by: Gillbot

Originally posted by: alphatarget1

Originally posted by: Tooncesthedrivingcat
that's gonna hurt your score for a bit. And Amex has been doing this alot lately.

I don't need a loan anytime soon so that's good...

Citi took my interest rate from under 10% to over 22%. Needless to say, that one is now closed. I've had that account for nearly 15 years.

You know what you're interest rate is? 😕

I pay my card off every month, but they did the same thing to me. Raised it from 9% to 16.99%. I don't care because I never use it (APR), but it is a pretty shitty thing to do none the less.

 

[compuwiz1]

I wonder what triggers this?
If I don't pay off my balance, which I usually do, I try and make a payment equal to what my payment would be if I were to max out the card, although I normally keep it at or under 30% of total credit line.

Some of the quick research I did on this turned up a few reasons why this is happening.

1. Who holds your mortgage (makes no sense to me)
2. Where you live (is it a foreclosure hotspot?)
3. Where you shop - for some reason Wal*mart shoppers and others are targeted.

Also, patterns like inordinate spending - buying things like groceries or other things that most would normally pay cash for. I'm guilty of this, as I like to earn reward $$$ so I have been using my Amex Blue cash for almost everything, even $5 lunches.

 

[alphatarget1]

Originally posted by: compuwiz1
I wonder what triggers this?
If I don't pay off my balance, which I usually do, I try and make a payment equal to what my payment would be if I were to max out the card, although I normally keep it at or under 30% of total credit line.

Some of the quick research I did on this turned up a few reasons why this is happening.

1. Who holds your mortgage (makes no sense to me)
2. Where you live (is it a foreclosure hotspot?)
3. Where you shop - for some reason Wal*mart shoppers and others are targeted.

Also, patterns like inordinate spending - buying things like groceries or other things that most would normally pay cash for. I'm guilty of this, as I like to earn reward $$$ so I have been using my Amex Blue cash for almost everything, even $5 lunches.

Amex blue rewards suck anyway.

I'm a grad student who rents, don't live in a foreclosure hotspot and I haven't used the card in months. I used the card today to buy a meal and had planned on taking it to HI for vacation. Not anymore!

 

[dmcowen674]

Originally posted by: alphatarget1
Topic Title: American Express reduced my credit line by 95%
Topic Summary: 10k to 500

Good

 

[Wreckem]

Originally posted by: her209
Credit card companies are going to get bailed out next. Just watch.

AMEX was already made a "bank" in order to recieve the financial bailout.

They have to slash peopls limits and raise rates because they cannot cover the customers credit without credit themselves. No one is willing to purchase credit card based securities.

 

[rh71]

lol $500... do HS kids just starting out even start that low?

 

[compuwiz1]

Originally posted by: alphatarget1

Originally posted by: compuwiz1
I wonder what triggers this?
If I don't pay off my balance, which I usually do, I try and make a payment equal to what my payment would be if I were to max out the card, although I normally keep it at or under 30% of total credit line.

Some of the quick research I did on this turned up a few reasons why this is happening.

1. Who holds your mortgage (makes no sense to me)
2. Where you live (is it a foreclosure hotspot?)
3. Where you shop - for some reason Wal*mart shoppers and others are targeted.

Also, patterns like inordinate spending - buying things like groceries or other things that most would normally pay cash for. I'm guilty of this, as I like to earn reward $$$ so I have been using my Amex Blue cash for almost everything, even $5 lunches.

Amex blue rewards suck anyway.

I'm a grad student who rents, don't live in a foreclosure hotspot and I haven't used the card in months. I used the card today to buy a meal and had planned on taking it to HI for vacation. Not anymore!

When my brother was in college, it seemed he got all kinds of cards, some with pretty high limits, even with no tangible means of paying it all back if he were to run the balances up.

Are you employed yet? Maybe they are factoring in your employment/income/student status. If so, that's pretty knee-jerk on their part.

 

[rh71]

BTW, I have a question - Chase just sent me a letter saying that since I haven't used their card in 2 years, it is now closed. Does this negatively affect my credit score as if I closed it purposely?

 

[Aimster]

My AX is still stuck on $13400. I Spend $1500-5000 a month on it. It's the only credit card I use. I want them to raise it to $20,000. Then I'll be happy. Everyone I know has a $20,000+ limit except me 🙁. Guess I need to spend more than the 1500-5000 a month. They dont like me.

 

[ponyo]

Originally posted by: rh71
BTW, I have a question - Chase just sent me a letter saying that since I haven't used their card in 2 years, it is now closed. Does this negatively affect my credit score as if I closed it purposely?

yes

 

[compuwiz1]

Originally posted by: Wreckem

Originally posted by: her209
Credit card companies are going to get bailed out next. Just watch.

AMEX was already made a "bank" in order to recieve the financial bailout.

They have to slash peopls limits and raise rates because they cannot cover the customers credit without credit themselves. No one is willing to purchase credit card based securities.

Amex has pretty much always been a financial institution. Ever heard of American Express Centurion Bank?

 

[alphatarget1]

Originally posted by: compuwiz1

Originally posted by: alphatarget1

Originally posted by: compuwiz1
I wonder what triggers this?
If I don't pay off my balance, which I usually do, I try and make a payment equal to what my payment would be if I were to max out the card, although I normally keep it at or under 30% of total credit line.

Some of the quick research I did on this turned up a few reasons why this is happening.

1. Who holds your mortgage (makes no sense to me)
2. Where you live (is it a foreclosure hotspot?)
3. Where you shop - for some reason Wal*mart shoppers and others are targeted.

Also, patterns like inordinate spending - buying things like groceries or other things that most would normally pay cash for. I'm guilty of this, as I like to earn reward $$$ so I have been using my Amex Blue cash for almost everything, even $5 lunches.

Amex blue rewards suck anyway.

I'm a grad student who rents, don't live in a foreclosure hotspot and I haven't used the card in months. I used the card today to buy a meal and had planned on taking it to HI for vacation. Not anymore!

When my brother was in college, it seemed he got all kinds of cards, some with pretty high limits, even with no tangible means of paying it all back if he were to run the balances up.

Are you employed yet? Maybe they are factoring in your employment/income/student status. If so, that's pretty knee-jerk on their part.

I make an income as a grad student with an assistantship and I do have quite high CL across the board (with other issuers). I'm a net debtor but most of which are subsidized loans that don't need to be paid back till I get out of school and others are AOR funds in liquid accounts that I can pay off immediately if something happens.

And then there are some bad investments... If I didn't make them I'd be "out of debt" by now 😉

 

[tfinch2]

Originally posted by: Aimster
My AX is still stuck on $13400. I Spend $1500-5000 a month on it. It's the only credit card I use. I want them to raise it to $20,000. Then I'll be happy. Everyone I know has a $20,000+ limit except me 🙁. Guess I need to spend more than the 1500-5000 a month. They dont like me.

What's the point if you don't spend that much?

 

[rh71]

Originally posted by: Naustica

Originally posted by: rh71
BTW, I have a question - Chase just sent me a letter saying that since I haven't used their card in 2 years, it is now closed. Does this negatively affect my credit score as if I closed it purposely?

yes

bastids.

1) Now is this standard procedure for all companies?

2) What if I signed up for a card but never activated it? I suppose it's still considered an open account and subject to this credit consideration?

 

[Aimster]

Originally posted by: tfinch2

Originally posted by: Aimster
My AX is still stuck on $13400. I Spend $1500-5000 a month on it. It's the only credit card I use. I want them to raise it to $20,000. Then I'll be happy. Everyone I know has a $20,000+ limit except me 🙁. Guess I need to spend more than the 1500-5000 a month. They dont like me.

What's the point if you don't spend that much?

Increases my credit score.

 

[spidey07]

Best way to keep credit is to use it.

Look at it from a bank/credit card company's perspective.

"We give this guy a 10K limit but he never uses more than 1K and hardly ever" That's called exposure I believe.

 

[alphatarget1]

Last time I checked my score was low-mid 700s, btw.

 

[flxnimprtmscl]

Originally posted by: fuzzybabybunny
"That's nuts" is bad while "that's tits" is good. Frickin' double standard.

night night bun bun

 

[compuwiz1]

Originally posted by: spidey07
Best way to keep credit is to use it.

Look at it from a bank/credit card company's perspective.

"We give this guy a 10K limit but he never uses more than 1K and hardly ever" That's called exposure I believe.

That makes sense but then maybe one needs to cycle a card thru near it's limit and back down once in a while. As I understand it, just don't ever let your total available credit dip below 60% of all your credit lines or score suffers.

Right now I am at only about 15% of all my credit lines used. Hmmm, 32k available. I'd never go that high...ever.

 

[ponyo]

Originally posted by: compuwiz1

Originally posted by: spidey07
Best way to keep credit is to use it.

Look at it from a bank/credit card company's perspective.

"We give this guy a 10K limit but he never uses more than 1K and hardly ever" That's called exposure I believe.

That makes sense but then maybe one needs to cycle a card thru near it's limit and back down once in a while. As I understand it, just don't ever let your total available credit dip below 60% of all your credit lines or score suffers.

Right now I am at only about 15% of all my credit lines used. Hmmm, 32k available. I'd never go that high...ever.

Luckily none of my cards had any changes in lines or purchasing APRs. You don't have to max out your lines or get near it. If you do, you're a high risk to the bank and they'll probably cut your line. I've $45k limit on my Amex, and I've never charged over $5k in a single statement. I charge about $1-2k every month on the card and pay in full each month.

 

[cliftonite]

I had over 60k and it was recently reduced to ~12k.

 

[spidey07]

Originally posted by: compuwiz1

Originally posted by: spidey07
Best way to keep credit is to use it.

Look at it from a bank/credit card company's perspective.

"We give this guy a 10K limit but he never uses more than 1K and hardly ever" That's called exposure I believe.

That makes sense but then maybe one needs to cycle a card thru near it's limit and back down once in a while. As I understand it, just don't ever let your total available credit dip below 60% of all your credit lines or score suffers.

Right now I am at only about 15% of all my credit lines used. Hmmm, 32k available. I'd never go that high...ever.

I'm not talking about credit score. I'm talking about a banks perspective. Your credit cards are most likely across many different banks.

The bank (singular) doesn't really care much about your other credit cards other than your score and risk. You are an account with an unsecured limit. It's in their best interest to lower that limit if you are not using it, exposure.

So again I'm not talking about credit score, I'm looking at it from a bank perspective. I'm not in the financial industry but it only makes sense. Wanna keep credit lines? Use it. That doesn't mean pay them interest, just use your credit.

Think about it as if you (the bank) are the mafia. You gave jimmy the ability to take 10K of your money and skip town on you. Jimmy doesn't seem to need the money and your big boss is telling you he and the family doesn't have enough to cover all the jimmys and it costs money to get it from him.

Family = big bank
Boss = CC company
Jimmy = consumer